For everyone, selecting the best investment plan India is not a simple task. Choosing the appropriate investment product is crucial.
Because, only this thing will decide financial future and ultimately your life. Therefore planning and multiplying money in best possible manner does matter.
And that’s the reason, why are Smart people constantly looking for the best investment plans in India.
But on the contrary, It’s not always true that investments with high return rates are the greatest options; investments with moderate to low returns can still be wise Investment option for you, as per your circumstances and need.
The ideal investor would decide on a good debt-to-equity ratio ( asset allocation) and invest according to their risk tolerance.
It is best to invest in low, moderate, high risk investments at one time, maybe as per the life financial goals.
While choosing the best investment Plan, one should pay attention to the fact that risk and return come hand in hand.
High return may also indicate high risk associated with the investment. Thus it is crucial to invest carefully. It is best to take help from a Certified Financial planner, rather than going to a non qualified person.
Table of Contents
Top 20 Best Investment Options In India
Although there are many options, including FDs, mutual funds, life insurance, and real estate investing. But we’ll pick the top 20 investment plans in India and try to answer what is the best investment here.
| Investment Option | Holding Period Option | Duration | Risk | Return |
| Direct Equity | Any | Any | High | High |
| IPO | Any | Any | High | High |
| Mutual Funds | 1 day – years | Lumpsum or SIP | Low to high | Low to high Market linked |
| National Pension Scheme ( Govt. Scheme) | Upto age 60 | REGULAR payment up to Retirement | Low to high | Low to high Market linked |
| National Saving Certificate ( Govt. Scheme) | 5 year | One time investment | NA | 6.8% |
| PPF ( Govt. Scheme) | 15 year | Regular compulsory payment | NA | 7.1% |
| POMIS ( Govt. Scheme) | 5 year | One time investment | NA | 7.7% |
| RBI Floating rate Bonds ( Govt. Scheme) | 7 year | one time investment | NA | 7.1% |
| Sovereign Gold Bonds | 8 year | One time investment | NA | Depends on gold rates |
| Senior Citizen Saving Scheme | 5 year | One time investment | NA | 7.4% |
| PMVVY -Pradhan mantri Vaya Vandana Yojana | 10 Year | One time investment | NA | 7.4% |
| Mahila Samaan Saving certificate ( MSSC) | 2 Year | One Time | NA | 7.55% |
| Gold ETF | NA | Lumpsum or SIP | Low to high | Depends on gold rates |
| ULIP | 5 – 50 years or more | Single or regular | High | Market linked |
| Bond Funds | Any | Lumpsum or SIP | Low to High | Bonds Linked |
| Index Funds | Any | Lumpsum or SIP | High | Market linked |
| Real Estate | Any | One Time/Loan | Low to moderate | Low to High |
| Bank Fixed Deposit | All Duration | One Time | Low | Low |
| Corporate Fixed Deposit | All duration | One time | Low | Low |
| Recurring Deposit (Post Office) | 5 years | monthly payment | Low | Moderate |
| Recurring Deposit ( Banks) | 5 years | Monthly Payment | Low | moderate |
From the above best investment plan India – Recurring Deposits, Bank Fixed deposit, Post Office NSC, PPF, Senior Citizen Saving Scheme, PMVVY, Sovereign Gold Bond, RBI Floating rate Bonds, Mahila Samaan Saving certificate ( MSSC) are the risk free investment Options.
Direct Equity
Direct Equity or Equity makes you part owner of the company. Hey dude, you buy one share of the company, you become the part owner of the company.
This also means you are an equal partner in profit or loss. Since you are investing in a business, your profits could be very high or you may lose all your money.
That’s the risk with direct equity. It can be rewarding or you may lose the entire investment amount. Think like it is your own business.
Therefore, before investing , thorough research is necessary.
IPO
IPO or initial public offering the money raising request from the company. Company needs money to expand its business. Thus , before moving to the stock market, the company is initially offering the public to buy shares.
Again, Investing can be highly rewarding or you may have to wait for a long time before you could make some profit.
Again, Investing can be highly rewarding or you may have to wait for long time before you could make some profit.
Mutual Funds
Mutual fund is a professionally managed fund. A mutual fund pools money from many investors.
The Asset management companies such as HDFC, Kotak, DSP, ICICI Prudential, Aditya Birla Sun Life etc. floats many mutual fund schemes.
These companies invest your money in stocks/ debt securities.
Since, a single mutual fund scheme invests in more than 30-50 stocks at any point in time, the risk is lower than stocks. There are again a wide variety of equity mutual fund options available.
To know more about types of mutual funds : Beginners Guide to Mutual Funds
Read more about Step by step guide on How to Start a mutual fund SIP
LIC or SIP- Which is better? – BestInvestIndia
How To Invest Lump Sum Amount In Mutual Funds?
How To Become A Crorepati With SIP Investment 5000 Per Month
National pension Scheme
NPS is a Retirement scheme, wherein you pay till your retirement i.e. upto age 60. NPS is floated by Central Govt. of India. Here, the pension amount depends on your contribution, fund choice and fund performance and other factors such as investment duration.
Know the best NPS Fund Manager for you
After completion of this period you can withdraw up to 60% as lump sum and pension is given from rest of amount.
National Pension Scheme(NPS)- All You Need To Know From Entry To Exit Rules
Top 12 Benefits of NPS -You should know
NSC
National Saving Certificate is a post office saving scheme. Anyone can buy NSC by paying a minimum of Rs 1000. NSC matures after completion of 5 year. The current interest rate is 6.8%.
NSC -National Saving Certificate-Feature,Interest Rate 2023
PPF
Public Provident Fund (PPF) is a Central Government of India Saving Scheme. PPF is a safe, tax saving investment option with attractive returns. The Public Provident Fund is especially popular for its safe and secure attractive returns.
A 15-year investment plan is the PPF account. Money cannot be withdrawn until 15 years have passed. You are allowed to borrow money or take a partial withdrawal from your PPF account.
For a long period of time, a Public Provident Fund guarantees safe, stable returns. For those who are risk averse, PPF is a fantastic investment plan. Further Additionally, this scheme offers investor tax benefits and diversification (EEE advantage). PPF money cannot be taken by a court order, making it safer for investors with significant debts as well.
Moreover PPF accounts become safe haven for senior citizens because of its tax free withdrawals and guaranteed safe returns.
Read more about PPF
Top 10 PPF Account Benefits-You Must KNOW
POMIS ( Post Office Monthly Income Scheme)
POMIS is a monthly income scheme. You can deposit a lump sum amount ( maximum 4.5 lac in one name, 9 lac in case of joint account ) 9 lac in single holding and 15 lakh in Joint holding ( as per Budget 2023) in any post office in India.
POMIS is suitable for those who need regular and guaranteed monthly income from their money.
Know more about How to take regular income from Mutual Funds through SWP
How does POMIS work
- Deposit a lump sum amount
- Receive monthly payment for 5 year
- After 5 year, deposited money is refunded
Monthly Income Scheme From Post Office -Invest In POMIS
RBI Floating Rate Bonds
The central GOI has switched out 7.75 percent bonds for the 2020 (Taxable) scheme of RBI variable rate savings bonds. These bonds will be offered starting on July 1, 2020.
This time, the interest rate on these bonds is linked with NSC interest rate and hence return will fluctuate and be a floating rate bond.
RBI Floating Rate Savings Bonds 2020
Sovereign Gold Bonds
A sovereign gold bond is a substitute for physical gold. You can buy sovereign gold bonds by paying cash and the bonds will be redeemed in cash on maturity.
These gold bonds are issued by the Reserve Bank of India on behalf of the Government of India. The gold bonds are denominated in 1 gram of gold.
All You Need To Know About Sovereign Gold Bond Scheme 2021
SCSS
SCSS is a five year Government-sponsored saving scheme for individuals of age of 60 and above. The Government of India introduced this scheme in 2004, intending to provide regular and steady income to senior citizens in India.
The SCSS account offers a competitive interest rate of 7.4% Now 8% per annum( applicable from 1 jan 2023) to senior citizens. It is a 100% safe scheme as it is backed by GOI.
Senior Citizen Saving Scheme (SCSS)
How does SCSS work?
Initially, you deposit a lump sum amount. You get tax deduction up to Rs 150000 under section 80C for the very first year only( no deduction if you do not deposit further).
Thereafter you will receive interest every quarter. Your principal amount is returned back to you after completion of 5 years.
Please Note As per Budget 2023 SCSS Maximum investment limit has increased to 30 lac.
Senior Citizen Saving Scheme (SCSS)
PMVVY Vs Senior Citizen Saving Scheme- Which Is Better Investment For You?
PMVVY
Pradhan Mantri Vaya Vandana Yojana is a LIC’s guaranteed pension scheme for senior citizens in India. Here, you deposit a lump sum amount of money and start getting a regular payout( pension) from next month.
However, the payout depends on the payout option you have chosen at the start of the policy.
How To Open PMVVY Scheme Online
Want to compare the senior schemes PMVVY Vs SCSS
Gold ETF
Gold ETF is an exchange traded product which tracks physical gold price. Gold ETF is a passive investment which typically reflects physical gold but it also reflects the liquidity, flexibility and taxability of stock investments.
ULIP
ULIP or Unit Linked Insurance plans provide the insurance cover along with investment in the market. The ULIP aims to provide market linked returns and insurance coverage at the same time. There are some low cost ULIP are also available in the market.
HDFC Click 2 Wealth- Review, Features & Benefits
Bond Funds
Mutual funds are market linked products but there is one another variety of option is also available known as bond funds or debt funds. These mutual funds typically invest in T- bills, commercial papers, Bonds and debentures.
There are a variety of bond funds available such as Banking & PSU fund, Corporate bond fund, Dynamic Bond fund, Short term Bond Fund, Long Term bond fund, medium term bond funds, liquid funds, overnight funds and more.
Index Funds
Index Funds are the funds which invest in the underlying stocks of an index. These funds aim to track the index’s return.
Read more about Index Funds vs Mutual Funds – Which is better
Real Estate
Real Estate is a typically high value transaction and gives you physical possession of a property. Real Estate returns purely depend on the location of the property.
Bank Fixed Deposit
Fixed Deposits are the safe and secure way to invest money in your own bank. There are wide duration fixed deposits available with the bank.
One can deposit money and enjoy accessibility, flexibility and easy investing through the bank.
Corporate Fixed Deposit
Corporates and housing finance companies, NBFC also offer fixed deposits. They usually provide better returns than banks. But their risk grade is a little higher than the banks.
Post Office -Recurring Deposit
RD is a famous way to deposit money on a monthly basis and get a lump sum amount at the maturity of RD duration. One can deposit in a RD and enjoy a hefty amount at a later stage.
SBI Recurring Deposit Interest Rate 2022- Features, Eligibility & Interest Rate
Recurring Deposit ( Bank)
One can also start a recurring deposit with bank. Almost all banks provide this facility. Please find below example of SBI Bank RD.
SBI Recurring Deposit( SBI RD) allows you to save money monthly. Here, you deposit a fixed monthly sum for the chosen duration and a guaranteed lump-sum amount is given at maturity.
One can open an RD account and save money for future financial goals. The maturity time can be chosen as per your comfort level.
Also Read:Latest Post Office Interest Rates July -Sep 2022
Top 12 Investment Mistakes To Avoid In 2022
Which Is The Safest Investment With High Returns India
Conclusion
There are multiple Best investment options in India. But, the best investment plan is definitely a plan which suits to an individual requirement.
Therefore the best invest plan definition might differ person to person. Basically the best investment option depends on the person risk appetite, investment duration, goal for which money required and many other factors.
It is in your own interest to choose investments Financial Planning way.
Read more about the Top 10 Easy Financial Planning Rules for beginners
For short term investment needs one can choose safer options such as bank and corporate fixed deposit, NSC, liquid mutual funds, short term debt funds, RD or SIP in liquid or balanced mutual funds.
If your investment horizon is long enough then one may go for direct equity, index fund, equity mutual funds, IPO etc. But investment duration should be at least 5 or more years.
